Dollar Slips to 10-Day Low After US-Iran Deal Boosts Risk Appetite
By Aboki Forex —
The U.S. dollar fell on Monday, hitting a 10-day low against the euro and the British pound. This came after an agreement to end the conflict between the United States and Iran pushed oil prices and Treasury yields lower while lifting risk sentiment.
President Donald Trump said a memorandum of understanding to end the Gulf war has been signed by both the United States and Iran. Reports from both sides boosted confidence the deal would hold.
Marc Chandler, Chief Market Strategist at Bannockburn Global Forex, said markets want to believe the agreement will stick. Under the terms, the blockaded strait would reopen and a ceasefire would extend for a 60-day negotiation period. Contentious issues like the future of Iran's nuclear programme are expected to be decided during that time.
An official signing ceremony is scheduled for Friday in Geneva.